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Factories have pulled base quotes for today by 10c/kg on levels offered earlier in the week.
The two ICM plants continue to lie at the bottom of the quotes with their 20c/kg price drop since last week leaving them offering a base of €4.50/kg.
Kepak and Kildare Chilling are back 10c/kg, quoting a base of €4.70/kg, while Moyvalley’s and Ballon’s all-in quote is also €4.70/kg, with Dawn Meats on €4.60/kg.
Differing reports
There are differing reports from agents. Some point to a reasonable number of lambs handled at the start of the week, while others report that the number of lambs coming on stream is reducing, with farmers opting to let lambs run into maximum weights in response to lower prices.
General prices paid range from €4.80/kg to €4.90/kg, with some higher prices paid by means of producer bonuses.
Some plants are trying to reduce prices to sellers handling small numbers and non-quality assured lamb to €4.70/kg to €4.75/kg.
There is also variation in the carcase weight offering, with some sellers starting to secure a higher allowance of 22kg.
Last weeks kill
Last week’s kill reached 72,889 head, up 4,806 head on last week and the highest for the year. This included 65,789 lambs and 7,100 ewes and rams.
Northern plants have also reduced quotes by 10p/kg to 15p/kg, with quotes ranging from £3.85/kg to £3.90/kg.
With the sterling strengthening to 91.5p to the euro on Wednesday afternoon, this equates to €4.43/kg to €4.49/kg, including VAT.
Regular sellers continue to secure 5p/kg to 10p/kg higher.
Last week’s northern lamb kill reduced 1,183 head to 10,867.
There were also 1,559 fewer sheep moving south, with 8,408 exported to southern plants for direct slaughter.
Base of €2.50/kg for ewes
All plants are now quoting a base, or all-in, price of €2.50/kg for ewes.
Reports suggest there is a backlog of ewes in the market, stemming from plants opting to concentrate on processing lambs ahead of the Eid al-Adha festival. Top prices reported range from €2.65/kg to €2.75/kg.
Brexit impact
The IFA met with the National Farmers Union and the Agriculture and Horticultural Development Board in the UK last week for a discussion on sheep issues which included how the tariff rate quotas (TRQ) on sheep meat will be dealt with in Brexit.
The IFA is firm in its stance that Irish and European farmers cannot be disadvantaged by an unfair TRQ between the UK and the EU.
The European Commission must ensure that the New Zealand quota of 228,000t must be allocated on a historical trading basis between the UK and the EU, said John Lynskey.
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